Panera Bread 2014 Annual Report Download - page 43

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31
Investing Activities
Cash used in investing activities was $211.3 million, $188.3 million, and $195.7 million in fiscal 2014, fiscal 2013, and fiscal
2012, respectively. Investing activities consists primarily of capital expenditures, cash used in business combinations, and proceeds
from the sale and leaseback of bakery-cafes.
Capital Expenditures
Capital expenditures are the largest ongoing component of our investing activities. New and existing bakery-cafe expenditures
include costs related to the opening of bakery-cafes and delivery hubs, to remodel and maintain bakery-cafes, and to upgrade
systems and equipment in bakery-cafes. Fresh dough facility expenditures include costs related to the opening of new fresh dough
facilities and costs to expand, remodel and maintain existing facilities. Support center expenditures primarily include investments
in technology infrastructure to create the capabilities needed to support ongoing operational initiatives and costs related to enterprise
systems and other capital needs. A summary of capital expenditures for the periods indicated consisted of the following (in
thousands):
For the fiscal year ended
December 30,
2014
December 31,
2013
December 25,
2012
New bakery-cafes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 109,941 $ 90,409 $ 72,683
Existing bakery-cafes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,915 63,175 50,185
Fresh dough facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,178 11,461 13,434
Support centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,183 26,965 16,026
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 224,217 $ 192,010 $ 152,328
Our capital requirements have been and will continue to be significant. Our future capital requirements and the adequacy of
available funds will depend on many factors, including the pace of expansion, real estate markets, site locations, the nature of the
arrangements negotiated with landlords, and the extent of operational initiatives. We believe that cash provided by our operations,
our term loan borrowings, and available borrowings under our credit facility will be sufficient to fund our capital requirements in
both our short-term and long-term future. We currently anticipate $225 million to $250 million of capital expenditures in fiscal
2015, including the opening of approximately 10 Company-owned delivery hubs, approximately 55 to 65 Company-owned bakery-
cafes, and the conversion of approximately 300 Company-owned bakery-cafes to Panera 2.0.
Business Combinations
We used approximately $2.4 million and $48.0 million of cash flows for acquisitions, in fiscal 2013 and fiscal 2012, respectively.
In fiscal 2013, we acquired substantially all the assets of one bakery-cafe from a Florida franchisee. In fiscal 2012, we acquired
substantially all the assets and certain liabilities of 16 bakery-cafes from our North Carolina franchisee. See Note 3 to the
consolidated financial statements for further information with respect to our acquisition activity.
Sale-Leaseback Transactions
During fiscal 2014, fiscal 2013, and fiscal 2012, we completed sale-leaseback transactions for six, three, and two Company-owned
bakery-cafes, respectively, resulting in cash proceeds of $12.9 million, $6.1 million, and $4.5 million, respectively.
Financing Activities
Cash used in financing activities was $52.5 million, $332.0 million, and $19.2 million in fiscal 2014, fiscal 2013, and fiscal 2012,
respectively. Financing activities in fiscal 2014 consisted primarily of $159.5 million used to repurchase shares of our Class A
common stock, partially offset by $100 million of proceeds from term loan borrowings. Financing activities in fiscal 2013 consisted
primarily of $339.4 million used to repurchase shares of our Class A common stock and $4.1 million for the payment of deferred
acquisition holdbacks, partially offset by $8.1 million received from the tax benefit from exercise of stock options. Financing
activities in fiscal 2012 consisted primarily of $31.6 million used to repurchase shares of our Class A common stock, partially
offset by $8.6 million received from the tax benefit from exercise of stock options.
Share Repurchases
On November 17, 2009, our Board of Directors approved a three year share repurchase authorization of up to $600 million of our
Class A common stock, pursuant to which we repurchased shares on the open market under a Rule 10b5-1 plan. During fiscal